Rates falling again:

The cost of most mainstream buy-to-let mortgages have seen further reductions over the past three months. Industry experts are saying rates could be at a level now that will never be seen again thus it could be a very good time to take advantage of a long term fixed deal.

Mortgage analysis show that the cost of a two-year fixed buy-to-let mortgage with an 80% loan to value (LTV) is now 3.2% lower than it was in August 2016. With an average current rate of 3.34% (as of 1st November 2016) the reduction in cost equates to a potential annualised saving of over £300 on a £150k mortgage.

The longer term analysis for this product paints an even better picture with Mortgage data showing a 5% drop in cost compared to May 2016 and an 11% fall compared to this time 12 months ago. In financial terms, the 11% reduction in cost equates to a potential massive annual saving of £1,100. With all the pressure firmly on Landlords now these potential savings are well worth investigating as profit margins are becoming tighter and tighter.

At 2.40%, a two-year tracker mortgage with a 70% LTV now costs 3% less than it did three months ago and offers landlords an annualised saving of £234.

The re-mortgaging process these days is much less complicated than years gone by. If you are a landlord and have not reviewed your current mortgages lately good advice is to do so as soon as possible. Taking action now could save you money and in turn increase your overall profitability considerably.

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